Client background: A leading 3PL solutions provider
Industry: Transportation & Logistics
Products/Services: Advanced Analytics

Reduced Customer churn rate using Churn Analytics for a logistics vendor

Business Challenge

  • Increasing customer churn rates

  • Understand factors leading to churn

  • Predict potential customers who are likely to churn

  • Roll out retention measures to keep customers with them and increase count of loyal customers

Business Solution

  • Gained understanding of churn objectives from the client’s perspective

  • Identified and extracted relevant attributes

  • Performed Exploratory data analysis to evaluate effect of data fields leading to customer churn

  • Built churn prediction model using Classification and Regression Tree (CART)

Business Benefits

  • The predictive churn model built attained 91% accuracy

  • Identified critical areas that sought more focus to reduce churn rate

  • Predicted customers who were about to defect

  • Rolled out proactive measures to reduce customer churn

  • Converted low-revenue customers into profitable ones

Environment

  • Tableau

  • R